Riga City, Latvia -- (SBWIRE) -- 08/24/2020 -- The Metex Project has come as a blessing in disguise for the Chinese precious metals traders and investors. The inadvertent curbs by the Chinese authorities on the trade products associated with precious metals has affected the traders immensely.
With a name derived from Metals Exchange, METEX allows the users to trade metals amongst each other from a common online platform. All listed metals on the exchange are tokenized, meaning they are stored in vaults, but ownership is moved across to whoever holds and controls the tokens. It's a simple solution, empowered by blockchain technology, which enables people all across the globe to access real time metals trading.
Why is Metex Exchange a good option for Chinese Metal Traders?
The Chinese government has been prompt in curbing the trading in precious metals. This has left the avid investors at the mercy of the government to allow trading in precious metals again. With several premier banks in China closing their doors, barring the citizens from opening accounts to trade in Platinum and Palladium, the future seems dim.
The reason cited by the banks and authorities propagates risk exposure, and these measures are implemented to control the risks. The rising tensions between the US and China have only fueled the fire to aggravate the situation further. The woes of the market's positioning due to a slump in global trade have also forced the government to protect the consumer's interest.
How Metex Exchange Works
The basic premise of Metex is the tokenization and trade of precious metals. So, every single unit of precious metal is tokenized on the blockchain and can be traded on the Metex Exchange using Bitcoin or USD Tether.
Metex Exchange is an unbiased and universal platform allowing investors from all corners of the world to participate.
After setting up an account with Metex Exchange, an investor or trader can deposit Bitcoin or USDT and easily buy digitized metals directly from other sellers. At present, the gold and silver metals listed on the platform are from Ainslie Wealth in Australia, a highly regarded bullion dealer with over 35 years of industry experience.
But where is the Gold?
All the digitized precious metals are backed by their physical form, located in highly secure vaults within Australia. Buying digital gold on the Metex Exchange means that you're acquiring exposure to the same amount of that metal, without having to worry about logistics, storage or insurance concerns.
By trading on Metex Exchange, investors can experience:
Access to a highly secure and democratized global market of precious metals trade while sitting at home.
Peace of mind, knowing that every metal token listed on the exchange is full reserve, meaning it's backed 100% by physical vaulted metal.
With time, Metex has set the course to include other metals like nickel and tin to the exchange, and enlist them for trade. There are also plans to add other major altcoins to the platform for enhancing the accessibility and platform's utility to reach the masses.
Can Tokenization Outrun Government Restrictions
Looking at the fact that the very essence of cryptocurrency is to bypass the governments' limitations, an exchange like Metex Exchange is much more than a trading platform.
The standard trade of metals is highly lucrative, yet exposed to the market forces and economic stimulus. During a recession, supposing that the government bans or disallows the trade of physical metal, digital tokenized metals will shield any investor from the adverse effects of this decision. With the digitized metals, the investor gains addition to control and can move the tokens as they please, even physically withdrawing gold and silver within Australia.
Advantages of Using Metex Exchange
The Metex Exchange operates with live order books and is subject to supply and demand. The trading price of the metal tokens is derived by the buy and sell orders submitted.
Regular audits of tokenized metals ensure that the 1:1 ratio between the physical and tokenized metal is always maintained.
From the 1st of July 2020, the seller and buyer are charged a trade fee of 1%, which is relatively low compared to other mediums of exchange.
Until the 13th of September, 2020, Metex Exchange does not levy a withdrawal fee.
Is Metex Exchange going to alter the way we trade metals?
Even though the answer to this question ends up in a resounding Yes, there is a lot of hidden potentials yet to be explored. The founders of Metex have a mixed background of trading, mining, and cryptocurrency experience. With a vision to improve the simplicity, cost, and access to metal trading, Metex might have developed a platform that will one day turn out to be a global marketplace on tokenized metals.
About Cryptoshib
Criptoshib tries to keep crypto enthusiasts updated with the latest happenings and stories from the crypto world. We try to post stories about projects and people of the crypto and blockchain communities from around the world.
Media Contact
https://cryptoshib.com/metex-exchange-transact-precious-metals